NATIXIS -2020 Universal Registration Document

FINANCIAL DATA Consolidated financial statements and notes

value in use, which is the present value of future cash flows. If the recoverable value of the asset or CGU is lower than its carrying amount, an impairment loss is recognized in income under “Depreciation, amortization and impairment of property, plant and equipment and intangible assets”. Write-downs may be reversed if there has been a change in the conditions that initially resulted in the write-down (for example there is no longer any objective evidence of impairment). Gains or losses on disposals Gains or losses on disposals of assets used in the business are recognized in the income statement under “Gains or losses on other assets”, while gains and losses on disposals of investment property are recordedwithin “Income from other activities” or “Expenses from other activities”. Scrapping or discontinuation of fixed assets under construction The expense incurred from the scrapping of a fixed asset is booked to “Depreciation, amortizationand impairment of property, plant and equipment and intangible assets” on the consolidated income statement. The discontinuationof IT projects under development results in their derecognition. A corresponding expense is posted to “Gains or losses on property, plant and equipment and intangible assets” on the consolidated income statement. and discontinued operations A non-current asset (or group of assets) is meant to be disposed of when its carrying amount is recoveredby means of a sale. This asset (or group of assets)must be immediatelyavailable for the sale, and it must behighly likely that the sale will happen within twelve months. A sale is highly likely if: a plan to sell the asset (or group of assets) involving active V marketing is made by management; a non-binding offer has been submitted by at least one potential V buyer; it is unlikely that significant changes will be made to the plan or V that it will be withdrawn. The relevant assets are classified in the “Non-current assets held for sale” line item and cease to be amortized as soon as they are reclassified. An impairment loss is recognized if their carrying amount is higher than their fair value less selling costs. Associated liabilities arealso identified on a separate line of the balance sheet. A group held for sale may be a group of CGUs, a CGU or part of a CGU. The group may include the entity’s assets and liabilities, including current assets, current liabilities and assets that are outside the scope of the measurement provisions under IFRS 5. If a non-current asset within the scope of the measurement provisions under IFRS 5 is part of a group held for sale, the measurement provisions under IFRS 5 apply to the group as a whole, which means that the group is measured at the lower of its carrying amount or its fair value net of selling costs. When the fair value of the group of assets and liabilities is lower than their overall net book value, Natixis limits the amount of impairment to non-current assets (goodwill, intangible assets and property, plant and equipment) measured in accordance with IFRS 5. Assets held for sale 5.8

Depreciation and amortization As soon as they are in a condition to be used by Natixis in the manner in which they were intended, property, plant and equipment and intangible assets are depreciated or amortized over their estimated useful lives on a straight-line, declining or increasing balance basis, whichever best reflects the pattern in which the economic benefits are consumed. The residual value of the asset is deducted from its depreciableor amortizableamount when it can be measured reliably. Natixis does not believe it can reliably measure the residual value of items other than land and non-destructible buildings classified as historical monuments. They are therefore assigned a residual value of zero. In line with IAS 16, a specific depreciation schedule is defined for each significant component of an item of property, plant and equipment which has a different useful life or is expected to consume future economic benefits differently from the item as a whole. For buildings used in the business and investment property, the following components and depreciation periods have been identified:

Component

Depreciation period

Land

NA NA

Non-destructible buildings classified as historical monuments Walls, roofs and waterproofing

20-40 years 30-60 years 10-20 years 10-20 years 8-15 years

Foundations and framework

External rendering

Equipment and installations Internal fixtures and fittings

5

Other items of property, plant and equipment are depreciated over their estimated useful lives, generally five to ten years. When the fixed assets relate to a leased building, their depreciation period is made consistent with that of the leases. Purchased software is amortized on a straight-line basis over its estimated useful life, which in most cases is less than five years. Internally generated software is amortized over its estimated useful life, which cannot exceed fifteen years. Other intangible assets mainly consist of components of the client portfolio, which are amortized over the term of the contracts (average term of five to eight years for the United States and 10 years in Australia). Depreciation periods must be reviewed annually and, where applicable, the impact of any change in estimate is recognized prospectively, in income, from the date of the change. Depreciation of fixed assets is presented under “Depreciation, amortization and impairment of property, plant and equipment and intangible assets” in the consolidated income statement. Impairment Assets are tested for impairment whenever there is objective evidence that they may be impaired and at least annually in the case of intangible assets with an indefinite useful life. Natixis considers whether there is any evidence of impairment at each reporting date. If any such evidence exists, the recoverable value of the individual asset is estimated wherever possible; otherwise the recoverable value of the CGU to which the asset belongs is estimated. The recoverable value is the higher of fair value less selling costs and

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2020